If you’re looking for LLC company formation in Dubai,Uae? Dubai is an ideal choice for your business. Setting up a business can be challenging, especially when you’re busy focusing on other aspects.
At JP International, our team of business experts ensures a fast and efficient company setup process, allowing you to concentrate on your business operations.
If you need guidance on opening an LLC company in Dubai, our comprehensive guide will help you through the process step by step.
Steps to set up LLC company formation in Dubai
- Decide on the Business Activity and Legal Structure
- Draft the Memorandum of Association (MOA) :
- Obtain Necessary Approvals and Licenses
- File the Company Registration Documents
- Pay Registration Fees and Capital Requirements
- Receive Company License and Documents
- Open a Corporate Bank Account
These are the steps you must go through when forming an LLC company in Dubai.
you don’t have to worry because you only need to choose a name, answer a few questions asked by our business experts, and provide necessary documents.
If you want to to know details, Learn more about steps to open a company in dubai.
We will take care of the rest for you.
So you might be wondering what the required documents for LLC formation are:
- Investor’s passport copy
- Local Sponsors passport COpy
- NOC of shareholder
- Emirates ID copy
- DED application form
- Attested tenancy contract
- Attested MOA from a public notary
Additional documents may be required according to the business, so it’s better to get a free consultation from our business experts for clarification on the required documents.
What is benefits of LLC company in Uae?
Limited liability protection :
In an LLC, shareholders can enjoy limited liability, which means they are only liable for the company’s obligations up to the extent of their investment in the company.
Flexibility in ownership :
An LLC can have more than one shareholder, which in turn facilitates growth and investment opportunities.
Access to the UAE market :
LLCs can operate anywhere in the UAE mainland, allowing access to the local market and opportunities for business expansion.
Tax advantages :
The UAE does not impose federal corporate or personal income taxes, offering tax advantages to businesses operating in the country.
No minimum capital :
There is no minimum capital required for a Limited Liability Company.
Property ownership :
LLCs with both foreign or GCC shareholders can buy property in designated parts of Dubai.
How long does it take to form a LLC Company formation in Dubai?
Forming an LLC (Limited Liability Company) in the UAE can vary depending on several factors, including the emirate where you are establishing the company, the completeness of your documentation, and the efficiency of the relevant authorities involved in the registration process.
However, typically, it can take anywhere from 2 to 4 weeks to complete the company formation process in the UAE.
Cost of forming an llc company in UAE
The average cost of registering an LLC Company in the UAE ranges from 20,000 to 30,000 AED.
The cost of forming an LLC (Limited Liability Company) in the UAE can vary depending on several factors, including the emirate where you are establishing the company, the specific business activities, and any additional services you may require.
Additionally, license renewal costs start from 8,000 to 15,000 AED and vary from business to business.
Difference between FZE & LLC in UAE
FZE (Free Zone Establishment):
It’s a legal entity formed in a free zone of the UAE. It can have one shareholder (individual or corporate entity) and offers various benefits like full ownership, tax exemptions, and simplified import-export procedures.
LLCs in the free zone are divided into two:
Free Zone Establishment Limited Liability Company (FZE LLC) and Free Zone Company Limited Liability Company (FZCO LLC). The feature of FZE LLC is that it has a single shareholder (single-member LLC), unlike FZCO LLC, where one can have multiple shareholders for the company.
LLC (Limited Liability Company):
An LLC is a legal entity formed on the mainland of the UAE. It requires a minimum of two shareholders and offers more flexibility in terms of business activities and operations. Companies with an LLC structure in the mainland would require 51% ownership to be given to a local sponsor, while 49% is owned by the foreign expat.
| Permissions | Free Zone | Mainland |
|---|---|---|
| Is it allowed to rent an office in dubai? | Yes | Yes |
| Allowed to buy property? | No | Yes |
| Annual License Renewal | Yes | Yes |
| Allowed to conduct business within dubai | No | Yes |
| Uae Bank Account Permission | Yes | Yes |
| Full Foreign Ownership | No | Yes |
| Allowed To Recruit Staff In Uae | Yes | Yes |
| Allowed Number Of Shareholder | 1 | 1 to 50 |
| Annual Accounting & Auditing | Yes | Yes |
How do i add partner or remove partner to my llc license in dubai?
The first step of adding partners is to identify the individuals or entities who are going to join the business. The next step is to draft a shareholder agreement, which outlines the rights, obligations, and responsibilities of the partners. If there are current shareholders, then we need their approval.
Afterwards, then documents of the new partner need to be provided. We submit these documents to the Department of Economic Development (DED) through approved portals or service centers. At the same time, we need to pay Ded service fee, and we wait for approval. Once application gets the approval, we get the new trading License.
When removing a partner, we need to obtain the partner’s consent. After that, we inform the DED about the partner’s intent to leave the business. Finally, it’s important to settle any financial obligations. Once the DED approves the request, We get an updated trading license.
Difference between LLC and Sole Establishment:
LLC (Limited Liability Company):
An LLC is a separate legal entity from its owners, offering limited liability protection. It requires at least two shareholders and is suitable for medium to large businesses.
Sole establishment :
A sole establishment, also known as a sole proprietorship or a single-owner LLC, is a business owned and operated by a single individual. The owner is personally liable for all business debts and obligations.
Converting a sole establishment to LLC:
Converting a sole establishment to an LLC in Dubai is like giving your business a new legal structure. First, you’ll need to update your business documents to reflect this change. Then, you’ll need to get approval from the Dubai authorities.
After that, you’ll apply for a new license that fits the LLC setup. Make sure you have all the necessary paperwork and follow the rules carefully. It’s a good idea to get help from us since we know the process well.
With our guidance, you can smoothly switch from being a sole establishment to an LLC in Dubai, enjoying the benefits that come with this new legal structure.
What are the Advantages & disadvantages of LLC in Uae ?
Advantages of LLC Company Formation in Dubai :
- Limited Liability: Shareholders’ personal assets are protected from business debts and liabilities.
- Flexibility: LLCs offer flexibility in management and operation, allowing for various ownership structures and profit distribution mechanisms.
- Access to Mainland Market: LLCs can operate anywhere in the UAE mainland, providing access to a larger market compared to free zone entities.
- Credibility: LLCs is more reputable and credible business entities, which can be beneficial for attracting investors and partners.
Disadvantages of LLC Company Formation in Dubai :
- Complex Formation Process: Establishing an LLC in the UAE involves a more complex and time-consuming process.
- Higher Setup Costs: The initial setup costs for an LLC, including government fees, legal expenses, and capital requirements, can be higher than establishing a business in a free zone.
- Compliance Requirements: LLCs are subject to various regulatory requirements and ongoing compliance obligations, which may require additional time and resources to fulfill.
Why do you need our help For LLC Company formation in Dubai?
In summary, establishing an LLC company in Dubai presents numerous benefits, including limited liability protection, flexibility in ownership, and access to the local market.
While the process involves several steps and considerations, seeking professional assistance, such as from our team, can streamline the formation process.
Despite potential challenges like higher setup costs and compliance requirements, the advantages of an LLC make it an attractive option for businesses looking to operate in the UAE.
